Can Big O Tires change the structure of the payment of advertising contributions at its discretion?

According to Big O Tires' 2025 Franchise Disclosure Document, Big O Tires retains the right to modify how franchisees pay their advertising contributions. This means Big O Tires can alter the method, timing, or allocation of these payments at any time.

Currently, a franchisee's advertising contributions may be directed to a Local Fund managed by a Local Group, spent on approved advertising services, or paid directly to Big O Tires. Big O Tires can use these funds for a Local Fund it administers or forward them to a Local Group. The standard contribution is 3% of the store's gross sales for the previous month to the Local Fund and 1% retained by the store for advertising, provided the franchisee meets Big O's requirements.

This discretion allows Big O Tires to respond to changing market conditions or strategic priorities. However, it also means franchisees must be prepared for potential changes in how they manage and allocate their advertising funds. Franchisees should stay informed about any changes to the advertising contribution structure and understand how these changes may impact their local marketing efforts.